state of arkansas...1. an official authorized to bind the vendor(s) to a resultant contract must...

STATE OF ARKANSAS Department of Human Services

Office of Procurement 700 Main Street,

Little Rock, AR 72201

INVITATION FOR BID BID SOLICITATION DOCUMENT

SOLICITATION INFORMATION

Bid Number: 710-18-1005 Solicitation Issued: 12/29/2017

Description: Actuarial Consulting Services

Agency: Arkansas Department of Human Services

SUBMISSION DEADLINE FOR RESPONSE

Submission Date: January 16, 2018 Bid opening Time: 1:00 PM CST

Bids shall not be accepted after the designated bid submission date and time. In accordance with Arkansas Procurement Law and Rules, it is the responsibility of vendors to submit proposals at the designated location on or before the bid submission date and time. Bids received after the designated bid submission date and time shall be considered late and shall be returned to the vendor without further review. It is not necessary to return "no bids" to the Office of Procurement (OP).

DELIVERY OF RESPONSE DOCUMENTS

Delivery Address:

Drop off (walk in):

United States mail (USPS):

Commercial Carrier (UPS, FedEx or USPS Exp):

Arkansas Department of Human Services Attn: Office of Procurement 700 Main Street Slot W345 Little Rock, AR 72201 Arkansas Department of Human Services Attn: Office of Procurement P.O. Box 1437 Slot W345 Little Rock, AR 72203-1437 Arkansas Department of Human Services Attn: Office of Procurement 112 West 8th Street, Slot W345 Little Rock, AR 72201 Delivery providers, USPS, UPS, and FedEx deliver mail to OP’s street address on a schedule determined by each individual provider. These providers will deliver to OP based solely on the street address.

Bid’s Outer Packaging:

Outer packaging must be sealed and should be properly marked with the following information. If outer packaging of proposal submission is not properly marked, the package may be opened for bid identification purposes.

• Bid number • Date and time of bid opening • Vendor's name and return address

Department of Human Services CONTACT INFORMATION

OP Buyer: Barry Goldman Buyer’s Direct Phone Number:

501-537-2446

Email Address: [email protected] DHS’s Main Number:

DHS Website:

OPS Website: http://humanservices.arkansas.gov/Pages/default.aspx http://www.arkansas.gov/dfa/procurement/bids/index.php

http://humanservices.arkansas.gov/Pages/default.aspx

http://www.arkansas.gov/dfa/procurement/bids/index.php

Bid Solicitation Document Bid No. 710-18-1005

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SECTION 1 - GENERAL INSTRUCTIONS AND INFORMATION

1.1 PURPOSE

This Invitation for Bid (IFB) is issued by the Arkansas Department of Human Services (DHS), Office of Procurement (OP) to obtain pricing and a contract for actuarial services including analyses of new and existing programs and populations, Medicaid waiver assistance, rate development and verification, budget modeling, benefit and reimbursement studies, and long term services and supports assistance.

1.2 TYPE OF CONTRACT

A. A Term contract will be awarded to a single vendor.

B. Any resultant contract of this Bid Solicitation shall be subject to State approval processes which may include Legislative review.

C. The term of this contract shall be for one (1) year. The anticipated starting date for the contract is 02/16/18

Upon mutual agreement by the vendor and agency, the contract may be renewed by OP on a year-to-year basis, for up to six (6) additional one-year terms or a portion thereof not to exceed a total aggregate contract term of seven (7) years.

1.3 ISSUING AGENCY

The Office of Procurement (OP), as the issuing office, is the sole point of contact throughout this solicitation process. Vendor questions regarding this Bid Solicitation should be made via e-mail to the State’s buyer as shown on page one of this document. Vendor’s questions will be answered as a courtesy and at vendor’s own risk.

1.4 BID OPENING LOCATION

Bids submitted by the opening time and date shall be opened at the following location: Department of Human Services

Office of Procurement 700 Main Street

Little Rock, AR 72201 Vendors wishing to attend the bid opening must report to the main entrance location, Arkansas Department of Human Services, Donaghey Plaza South Building, 700 Main Street, Little Rock, Arkansas 72201 and check in with the receptionist. All attendees are required to obtain security clearance upon entrance to the building by submitting a current, valid photo ID, preferably a driver’s license, to the Security Officer at the reception area. The Security Officer will issue a visitor’s badge which must be worn at all times. Before leaving the bid opening visitors are required to return the visitor’s badge to the Security Officer and retrieve their ID. The receptionist is to contact the buyer, for the vendor, for more detailed directions to the bid opening location.

1.5 DEFINITION OF REQUIREMENT

A. The words “must” and “shall” signify a Requirement of this solicitation and that vendor’s agreement to and compliance with that item is mandatory.

B. Exceptions taken to any Requirement in this Bid Solicitation, whether submitted in the vendor’s bid or in

subsequent correspondence, shall cause the vendor’s bid to be disqualified.

C. Vendor may request exceptions to NON-mandatory items. Any such request must be declared on, or as an attachment to, the appropriate section’s Agreement and Compliance Page. Vendor must clearly explain the requested exception and should reference the specific solicitation item number to which the exception applies. (See Agreement and Compliance Page.)

1.6 DEFINITION OF TERMS


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A. The State Procurement Official has made every effort to use industry-accepted terminology in this Bid Solicitation and will attempt to further clarify any point of an item in question as indicated in Clarification of Bid Solicitation.

B. The words “bidder,” “vendor,” and “contractor” are used synonymously in this document.

C. The terms “Invitation for Bid”, “IFB” and “Bid Solicitation” are used synonymously in this document.

1.7 RESPONSE DOCUMENTS A. Bid Response Packet

1. An official authorized to bind the vendor(s) to a resultant contract must sign the Bid Signature Page.

2. Vendor’s signature on this page shall signify vendor’s agreement that either of the following shall cause

the vendor’s bid to be disqualified

a. Additional terms or conditions submitted intentionally or inadvertently. b. Any exception that conflicts with a Requirement of this Bid Solicitation.

3. The following items shall be submitted with the Bid Response Packet in a sealed envelope.

a. EO 98-04 Disclosure Form (Attachment A). b. Copy of Vendor’s Equal Opportunity Policy. (See Equal Opportunity Policy.) c. Signed addenda to this IFB, if applicable. (See Requirement of Addendum.) d. Documentation that vendor meets the minimum qualifications outlined in this IFB. (See Minimum

Qualifications.)

4. DO NOT include any other documents or ancillary information, such as a cover letter or promotional/marketing information. Submit one (1) electronic copy of the response packet, excluding the Official Bid Price Sheet, preferably on a flash drive and one (1) hard copy. To the extent possible, all electronic files should be a single document in PDF format.

B. Official Bid Price Sheet. (See Pricing.)

1. Vendor’s original Official Bid Price Sheet must be submitted in hard copy format. 2. Vendor should also submit one (1) electronic copy of the Official Bid Price Sheet, preferably on a flash

drive, in a single PDF file.

3. The Official Bid Price Sheet, including the hard copy and electronic copy, must be separately sealed from the Bid Response Packet and should be clearly marked as “Pricing.” Vendor must not include any pricing in the hard copies or electronic copies of the Bid Response Packet.

1.8 AGREEMENT AND COMPLIANCE PAGES

A. Vendor must sign all Agreement and Compliance Pages relevant to each section of the Bid Solicitation Document. The Agreement and Compliance Pages are included in the Bid Response Packet.

B. Vendor’s signature on these pages shall signify agreement to and compliance with all requirements within the

designated section. 1.9 CLARIFICATION OF BID SOLICITATION

A. Contractor may submit written questions on an ongoing basis requesting clarification of information contained in this Bid Solicitation up to seventy-two (72) hours before bid submission deadline. Submit written questions by email to the buyer as shown on page one (1) of this Bid Solicitation.


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B. The attached response template (Attachment B) must be used for submission of all written questions. All questions should include the information specified in the response template. Written questions submitted in a different format may not be answered by DHS.

C. Contractor’s written questions will be responded to by the State. D. Answers to verbal questions may be given as a matter of courtesy and must be evaluated at contractor’s risk.

1.10 SUBCONTRACTORS

A. Vendor must complete, sign and submit the Proposed Subcontractors Form included in the Bid Response Packet to indicate vendor’s intent to utilize, or to not utilize, subcontractors.

B. Additional subcontractor information may be required or requested in following sections of this Bid Solicitation.

Do not attach any additional information to the Proposed Subcontractors Form.

C. The utilization of any proposed subcontractor is subject to approval by the State agency

1.11 PRICING A. Vendor(s) must include all pricing on the Official Bid Price Sheet(s) only. Any cost not identified by the

successful vendor but subsequently incurred in order to achieve successful operation shall be borne by the vendor. The Official Bid Price Sheet is provided in the Bid Response Packet.

B. A justification of prices quoted should be attached to the Official Bid Price Sheet.

C. To allow time to evaluate bids, prices must be valid for 120 days following the bid opening.

D. Failure to complete and submit the Official Bid Price Sheet shall result in disqualification.

E. All bid pricing must be in United States dollars and cents.

F. The Official Bid Price Sheet may be reproduced as needed.

G. The Official Bid Price Sheet and accompanying price justification must be separately sealed from the Bid

Response Packet.

1.12 PRIME CONTRACTOR RESPONSIBILITY A. A joint bid submitted by two (2) or more vendors is acceptable. However, a single vendor must be identified as

the prime contractor.

B. The prime contractor shall be held responsible for the contract and shall be the sole point of contact.

1.13 INDEPENDENT PRICE DETERMINATION A. By submission of this bid, the vendor certifies, and in the case of a joint response, each party thereto certifies

as to its own organization, that in connection with this bid:

• The prices in the bid have been arrived at independently, without collusion.

• No prior information concerning these prices has been received from, or given to, a competitive company.

B. Evidence of collusion shall warrant consideration of this bid by the Office of the Attorney General. All

vendors shall understand that this paragraph may be used as a basis for litigation.

1.14 PROPRIETARY INFORMATION A. Submission documents pertaining to this Bid Solicitation become the property of the State and are subject to

the Arkansas Freedom of Information Act (FOIA).


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B. In accordance with FOIA and to promote maximum competition in the State competitive bidding process, the

State may maintain the confidentiality of certain types of information described in FOIA. Such information may include trade secrets defined by FOIA and other information exempted from the Public Records Act pursuant to FOIA.

C. Prospective Contractor may designate appropriate portions of its response as confidential, consistent with and

to the extent permitted under the Statutes and Rules set forth above, by submitting a redacted copy of the response.

D. By so redacting any information contained in the response, the Prospective Contractor warrants that it has

formed a good faith opinion having received such necessary or proper review by counsel and other knowledgeable advisors that the portions redacted meet the requirements of the Rules and Statutes set forth above.

E. Under no circumstances will pricing information be designated as confidential.

F. One (1) complete copy of the submission documents from which any proprietary information has been redacted

should be submitted on a flash drive in the Bid Response Packet. A CD is also acceptable. Do not submit documents via email or fax.

G. Except for the redacted information, the redacted copy must be identical to the original hard copy, reflecting the

same pagination as the original and showing the space from which information was redacted.

H. The Prospective Contractor is responsible for identifying all proprietary information and for ensuring the electronic copy is protected against restoration of redacted data.

I. The redacted copy will be open to public inspection under FOIA without further notice to the Prospective

Contractor.

J. If a redacted copy of the submission documents is not provided with Prospective Contractor’s Bid Response Packet, a copy of the non-redacted documents, with the exception of financial data (other than pricing), will be released in response to any request made under FOIA.

K. If the State deems redacted information to be subject to FOIA, the Prospective Contractor will be contacted

prior to release of the documents.

L. The State has no liability to a Prospective Contractor with respect to the disclosure of Prospective Contractor’s confidential information ordered by a court of competent jurisdiction pursuant to FOIA or other applicable law.

1.15 CAUTION TO VENDORS A. Prior to any contract award, all communication concerning this Bid Solicitation must be addressed through OP.

B. Vendor must not alter any language in any solicitation document provided by the State.

C. Vendor must not alter the Official Bid Price Sheet.

D. All official documents and correspondence related to this solicitation shall be included as part of the resultant

contract.

E. Bids must be submitted only in the English language.

F. The State shall have the right to award or not award a contract, if it is in the best interest of the State to do so.

G. Vendor must provide clarification of any information in their response documents as requested by OP.

H. Bids must meet or exceed all defined specifications as set forth in this Bid Solicitation.


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I. Bids must meet all terms and conditions of this Invitation for Bid and the laws of the State of Arkansas.

J. Vendors may submit multiple bids.

1.16 REQUIREMENT OF ADDENDUM A. This Bid Solicitation shall be modified only by an addendum written and authorized by OP. B. An addendum posted within three (3) calendar days prior to the bid opening shall extend the bid opening and

may or may not include changes to the Bid Solicitation. C. The vendor shall be responsible for checking the following websites for any and all addenda up to bid opening:

http://www.arkansas.gov/dfa/procurement/bids/index.php, http://humanservices.arkansas.gov/Pages/default.aspx

1.17 AWARD PROCESS

A. Vendor Selection

1. Award shall be made on an ALL OR NONE basis to the lowest responsive bidder. Bidders must meet minimum qualifications. Bids must meet or exceed all defined specifications. Bids must meet all terms and conditions of this Invitation for Bid and the laws of the State of Arkansas.

2. When pricing is opened for scoring, the maximum amount of cost points will be given to the Contractor with the lowest totals as shown on each section of the Official Bid Price Sheet.

3. The amount of cost points given to the remaining contractors for each cost section will be

allocated by using the following formula: (A/B)*(C) =D A = Lowest Total Cost B = Second (third, fourth, etc.) Lowest Total Cost C = Maximum Points for Lowest Total Cost per section. D = Total Cost Points Received

Maximum Points Possible

Section A (Immediate Requirements) 200

Section B (Additional As-Needed Services) 800

Maximum Possible Cost Score 1,000

4. Contract award, extension, or renewal is contingent upon approval by officials of DHS, subsequent

approval by the DHS Office of Procurement, review by the Legislative Council and the availability of State funds. Changes to any non-financial portion of this agreement may be made with the agreement of both DHS and the Contractor.

B. Negotiations

1. If the State so chooses, negotiations may be conducted with the lowest responsive bidder. Negotiations

are conducted at the sole discretion of the State.

2. If negotiations fail to result in a contract, the State may begin the negotiation process with the next lowest responsive bidder. The negotiation process may be repeated until the lowest responsive vendor has been determined, or until such time the State decides not to move forward with an award.

http://www.arkansas.gov/dfa/procurement/bids/index.php



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C. Anticipation to Award

1. Once an anticipated successful vendor has been determined, the anticipated award will be posted on the following websites: http://www.arkansas.gov/dfa/procurement/pro_intent.php http://humanservices.arkansas.gov/Pages/default.aspx

2. The anticipated award will be posted for a period of fourteen (14) days prior to the issuance of a contract.

Vendors and agencies are cautioned that these are preliminary results only, and a contract will not be issued prior to the end of the fourteen day posting period.

3. OP shall have the right to waive the policy of Anticipation to Award when it is in the best interest of the

State. 4. It is the vendor’s responsibility to check the above referenced websites for the posting of an anticipated

award. D. Issuance of Contract

1. Any resultant contract of this Bid Solicitation shall be subject to State approval processes which may include Legislative review.

2. An Office of Procurement Official will be responsible for award and administration of any resulting contract.

1.18 MINORITY AND WOMEN-OWNED BUSINESS POLICY A. A minority-owned business is defined by Arkansas Code Annotated § 15-4-303 as a business owned by a

lawful permanent resident of this State who is:

• African American • American Indian • Asian American • Hispanic American

• Pacific Islander American • A Service Disabled Veteran as designated by the

United States Department of Veteran Affairs

B. A women-owned business is defined by Act 1080 of the 91st General Assembly Regular Session 2017 as a business that is at least fifty-one percent (51%) owned by one (1) or more women who are lawful permanent residents of this State.

C. The Arkansas Economic Development Commission conducts a certification process for minority-owned and

women-owned businesses. If certified, the Prospective Contractor’s Certification Number should be included on the Bid Signature Page.

1.19 EQUAL EMPLOYMENT OPPORTUNITY POLICY

A. In compliance with Arkansas Code Annotated § 19-11-104, the State is required to have a copy of the anticipated Contractor’s Equal Opportunity (EO) Policy prior to issuing a contract award.

B. EO Policies should be included as a hardcopy accompanying the solicitation response.

C. The submission of an EO Policy to OSP is a one-time Requirement. Vendors are responsible for providing updates or changes to their respective policies, and for supplying EO Policies upon request to other State agencies that must also comply with this statute.

D. Vendors, who are not required by law by to have an EO Policy, must submit a written statement to that effect.

1.20 PROHIBITION OF EMPLOYMENT OF ILLEGAL IMMIGRANTS

A. Pursuant to Arkansas Code Annotated § 19-11-105, prior to the award of a contract, selected vendor(s) must have a current certification on file with the Office of State Procurement (OSP) stating that they do not employ or contract with illegal immigrants.

http://www.arkansas.gov/dfa/procurement/pro_intent.php



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B. OP will notify the selected vendor(s) prior to award if their certification has expired or is not on file. Instructions

for completing the certification process will be provided to the vendor(s) at that time.

1.21 RESTRICTION OF BOYCOTT OF ISRAEL A. Pursuant to Arkansas Code Annotated § 25-1-503, a public entity shall not enter into a contract with a

company unless the contract includes a written certification that the person or company is not currently engaged in, and agrees for the duration of the contract not to engage in, a boycott of Israel.

B. This prohibition does not apply to a company which offers to provide the goods or services for at least twenty

percent (20%) less than the lowest certifying business.

C. By checking the designated box on the Bid Signature Page of the response packet, a Prospective Contractor agrees and certifies that they do not, and will not for the duration of the contract, boycott Israel.

1.22 PAST PERFORMANCE

In accordance with provisions of State Procurement Law, specifically OSP Rule R5:19-11-230(b)(1), a vendor's past performance with the State may be used to determine if the vendor is “responsible”. Proposals submitted by vendors determined to be non-responsible shall be disqualified.

1.23 TECHNOLOGY ACCESS A. When procuring a technology product or when soliciting the development of such a product, the State of

Arkansas is required to comply with the provisions of Arkansas Code Annotated § 25-26-201 et seq., as amended by Act 308 of 2013, which expresses the policy of the State to provide individuals who are blind or visually impaired with access to information technology purchased in whole or in part with state funds. The Prospective Contractor expressly acknowledges and agrees that state funds may not be expended in connection with the purchase of information technology unless that technology meets the statutory Requirements found in 36 C.F.R. § 1194.21, as it existed on January 1, 2013 (software applications and operating ICSs) and 36 C.F.R. § 1194.22, as it existed on January 1, 2013 (web-based intranet and internet information and applications), in accordance with the State of Arkansas technology policy standards relating to accessibility by persons with visual impairments.

B. Accordingly, the Prospective Contractor expressly represents and warrants to the State of Arkansas through

the procurement process by submission of a Voluntary Product Accessibility Template (VPAT) for 36 C.F.R. § 1194.21, as it existed on January 1, 2013 (software applications and operating ICSs) and 36 C.F.R. § 1194.22, that the technology provided to the State for purchase is capable, either by virtue of features included within the technology, or because it is readily adaptable by use with other technology, of:

1. Providing, to the extent required by Arkansas Code Annotated § 25-26-201 et seq., as amended by Act

308 of 2013, equivalent access for effective use by both visual and non-visual means.

2. Presenting information, including prompts used for interactive communications, in formats intended for non-visual use.

3. After being made accessible, integrating into networks for obtaining, retrieving, and disseminating

information used by individuals who are not blind or visually impaired.

4. Providing effective, interactive control and use of the technology, including without limitation the operating system, software applications, and format of the data presented is readily achievable by nonvisual means.

5. Being compatible with information technology used by other individuals with whom the blind or visually

impaired individuals interact.

6. Integrating into networks used to share communications among employees, program participants, and the public.

7. Providing the capability of equivalent access by nonvisual means to telecommunications or other

interconnected network services used by persons who are not blind or visually impaired.


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C. State agencies cannot claim a product as a whole is not reasonably available because no product in the

marketplace meets all the standards. Agencies must evaluate products to determine which product best meets the standards. If an agency purchases a product that does not best meet the standards, the agency must provide written documentation supporting the selection of a different product, including any required reasonable accommodations.

D. For purposes of this section, the phrase “equivalent access” means a substantially similar ability to

communicate with, or make use of, the technology, either directly, by features incorporated within the technology, or by other reasonable means such as assistive devices or services which would constitute reasonable accommodations under the Americans with Disabilities Act or similar state and federal laws. Examples of methods by which equivalent access may be provided include, but are not limited to, keyboard alternatives to mouse commands or other means of navigating graphical displays, and customizable display appearance. As provided in Arkansas Code Annotated § 25-26-201 et seq., as amended by Act 308 of 2013, if equivalent access is not reasonably available, then individuals who are blind or visually impaired shall be provided a reasonable accommodation as defined in 42 U.S.C. § 12111(9), as it existed on January 1, 2013.

E. If the information manipulated or presented by the product is inherently visual in nature, so that its meaning

cannot be conveyed non-visually, these specifications do not prohibit the purchase or use of an information technology product that does not meet these standards.

1.24 COMPLIANCE WITH THE STATE SHARED TECHNICAL ARCHITECTURE PROGRAM

The respondent’s solution must comply with the state’s shared Technical Architecture Program which is a set of policies and standards that can be viewed at: http://dis.publishpath.com/policies-standards. Only those standards which are fully promulgated or have been approved by the Governor’s Office apply to this solution.

1.25 VISA ACCEPTANCE A. Awarded vendor should have the capability of accepting the State’s authorized VISA Procurement Card

(p-card) as a method of payment.

B. Price changes or additional fee(s) shall not be levied against the State when accepting the p-card as a form of payment.

C. VISA is not the exclusive method of payment.

1.26 PUBLICITY A. Vendors shall not issue a news release pertaining to this Bid Solicitation or any portion of the project without

OP’s prior written approval. B. Failure to comply with this Requirement shall be cause for a vendor’s bid to be disqualified.

1.27 RESERVATION The State shall not pay costs incurred in the preparation of a bid.

1.28 SCHEDULE OF EVENTS

Public Notice of IFB December 29, 2017 Date and time for Opening Bids January 16, 2018 1:00 PM CST

Intent to Award Announced, On or About January 18, 2018 Contract Start, (Subject to State Approval) February 16, 2018

1.29 STATE HOLIDAYS

Holidays are those days as declared legal state holidays by authority of Act 304 of 2001. Those days are as follows:

New Year’s Day January 1

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Dr. Martin Luther King Birthday Third Monday in January George Washington Birthday Third Monday in February Memorial Day Last Monday in May Independence Day July 4 Labor Day First Monday in

September Veteran’s Day November 11 Thanksgiving Day Fourth Thursday in

November Christmas Eve December 24 Christmas Day December 25

Additional days can be proclaimed as holidays by the Governor through executive proclamation. State offices are normally closed on holidays; however there are occasions (i.e. during legislative sessions) when it may become necessary to keep state offices open on holidays. The Contractor shall maintain adequate staff on such working holidays.


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SECTION 2 – MINIMUM REQUIREMENTS

2.1 INTRODUCTION

This Invitation for Bid (IFB) is issued by the Arkansas Department of Human Services (DHS), Office of Procurement (OP) to obtain pricing and a contract for immediate and long-term actuarial services including without limitation, analyses of new and existing programs and populations, Medicaid waiver assistance, rate development and verification, budget modeling, benefit and reimbursement studies, and long term services and supports assistance. Beginning on January 1, 2019, the state will transition services for approximately thirty thousand (30,000) Arkansans with complex behavioral health and intellectual and developmental disabilities services needs to its new Provider-Led Arkansas Shared Savings Entity (PASSE) at an annual cost of approximately one billion dollars ($1,000,000,000). Under this unique organized care model, providers of specialty and medical services will enter into new partnerships with experienced organizations that perform the administrative functions of managed care. This organized care model is designed to achieve savings over a five-year period in the overall effort to “bend the cost curve” of Medicaid and help the program become sustainable. The state is also currently implementing a managed care model that will serve, on a capitated basis, many beneficiaries who receive Dental Services through Medicaid. As part of these efforts, DHS must establish actuarially sound rates based on Medicaid claims data for these services and populations. In addition, the State requires actuarial consulting services on several of its Medicaid Waiver programs, including its 1915b/c Waivers, which the State anticipates amending within the next eighteen (18) months. This effort will require actuarially sound rate studies to be conducted on services provided under the 1915(c) Home and Community Based Services Waiver -- known as the Community and Employment Supports (CES) Waiver – as well as analyses surrounding the CES Waiver population, waiver development, actuarially sound rate setting, and analyses of budget impacts, quality of care goals and results, and home and community-based service slots. The State also currently has a 1115 Waiver for its Arkansas Works program, which will require the successful respondent to assist DHS in its communications with the Centers for Medicare and Medicaid Services (CMS) surrounding 1115 Waiver work, development of budget neutrality figures, guidance on Waiver concepts and terms, and any other needed actuarial consulting with regard to this and future 1115 Waivers. In addition, the State requires actuarially sound rate development for programs covered under its Assisted Living Waiver and its ARChoices Waiver, which provides home and community-based services for physically disabled adults ages twenty-one (21) through sixty-four (64) and senior citizens ages sixty-five (65) and older. The priorities listed above are in addition to a range of long-term actuarial consulting needs, including without limitation program design, development, implementation and monitoring; support and technical assistance on CMS communications; participation in public meetings and private forums; benefit and reimbursement studies, pharmaceutical studies, long-term services and supports assistance, any other rate determinations that may result from policy changes within the agency, and other ad hoc projects as requested by DHS.

2.2 SERVICE DELIVERY

All services must be available during normal state work hours and within the agreed upon number of days unless otherwise arranged and coordinated with DHS. The vendor shall give DHS immediate notice of any anticipated delays that will affect the service delivery requirement.

2.3 MINIMUM QUALIFICATIONS The Contractor must meet the following requirements:

A. A minimum ten (10) years’ professional experience in commercial and Medicaid Managed Care rate setting in at

least five (5) states. Experience must include, at minimum, managed care environments for behavioral health and developmental disability services, plus services for one or more of the following populations: foster care, juvenile justice, or special needs.

B. Demonstrable experience and a thorough understanding of the 1915(b) waiver cost requirements and the

1915(c) waiver budget neutrality requirements.


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C. The bidder must include a copy of all required licensure and certification documents in the bidder’s response to this solicitation. See “Response Documents”.

2.4 SCOPE OF WORK

This IFB will provide DHS with statistical and actuarial services in support of the development, implementation, and evaluation of various projects, including without limitation the following: A. Immediate Requirements

Due to shortened timeframes related to the state’s Provider-led Arkansas Shared Savings Entity (PASSE), the Vendor shall be required to deliver the following in an expedited fashion on or before June 30, 2018:

1. Develop actuarially sound rates for services provided under the CES Waiver (see the list attached). As

part of this rate development, DHS expects that the Contractor will review the current CES Waiver rate methodology for overall integrity, compliance with federal Medicaid rules and regulations, and potential areas of improvement. The supportive living and respite service rates shall be changed from a daily rate to an hourly rate, and the Vendor shall provide input on the unit structure of any other CES waiver services, as needed. The Contractor is expected to identify any other needed and innovative adjustments to the model in support of program goals and values.

2. Develop actuarially sound capitated and shared savings rates and quality incentive payments for services

and populations provided under the PASSE based on claims data including without limitation Medicaid and other claims data.

3. Develop actuarially sound rates for DHS programs covered under Arkansas’ Assisted Living Waiver and

its ARChoices Waiver, including without limitation Assisted Living services and the ARChoices program.

B. Future Requirements In addition, the Vendor must provide additional actuarial consulting services on an “as-needed” basis. The exact scope of these projects will be identified as needs arise through a specific request from DHS. These projects may include activities which are not covered under Immediate Requirements (Section 2.4[A]) above. 1. Actuarial Analyses for Existing Populations and Programs

In addition to actuarially sound rate development, any additional actuarial analyses for existing populations and programs are covered under this task.

Consistent with the actuarial analyses tasks above, develop actuarially sound rates for various models for delivering Medicaid programs and services including without limitation a Provider-Led Arkansas Shared Savings Entity (PASSE) with multi-tiered managed care rules, the Arkansas Patient-Centered Medical Home Program (PCMH), a Program of All-Inclusive Care for the Elderly (PACE), Dental Managed Care, Non-Emergency Transportation (NET) for Medicaid beneficiaries, and the Arkansas Works program. In addition to actuarially sound rate development, this task will include analyses surrounding utilization and unit cost trends, incurred but not reported claims calculations, impacts of programmatic changes, efficiency adjustments, development of nonmedical expenditures including administration, medical management and profit, risk, and contingency margins, and other actuarial analyses impacting rate development.

Actuarial services around 1915b/c Waiver amendment work shall include without limitation assistance with CMS communications, development of budget neutrality and cost effectiveness figures, guidance on waiver concepts and terms, and assistance with the completion of cost effectiveness and budget neutrality portions of the Waiver applications, as well as any other needed actuarial consulting with regard to 1915b/c waivers.

2. Actuarial Analyses for New Populations and Programs

Analyses including actuarially sound rate development for new populations and programs as developed by DHS, including without limitation potential newly eligible populations created as a result of changes to Medicaid and the Affordable Care Act, as well as any other new populations and programs. In addition to actuarially sound rate development, any additional actuarial analyses for new populations and programs and their impacts is covered under this task.


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3. Program Design Strategy, Development, Implementation, and Monitoring

Assist and consult with regards to program design. This may include items such as solvency standards, reserves, risk sharing approaches, quality metrics, contracting, data reporting, financial template development and reporting, and other program items.

4. Public Meeting Support and Facilitation

At the request of DHS, attend and at times lead meetings in various settings to discuss aspects of Arkansas Medicaid, including but not limited to legislative meetings, stakeholder meetings, public comment meetings, provider community meetings, and internal DHS meetings.

5. State General Fund Budget Modeling

Assistance with General Fund budget forecast scenario modeling including a comprehensive understanding of the funding streams used by DHS.

6. Hospital Financial Modeling

Assistance with hospital Upper Payment Limit forecast modeling, guidance and analyses for hospital reimbursement methodology approaches including All Patient Refined Diagnosis Related Groups (APR-DRGs) and Enhanced Ambulatory Patient Groups (EAPGs) (once implemented), and meeting participation and facilitation with the Arkansas Hospital Association will be a part of this task among any other needed items.

7. Benefit and Reimbursement Studies

Analyses determining the impacts and implications of potential benefit changes or reimbursement adjustments on rates, access, quality of care, and budgets among other things.

8. Pharmaceutical Studies

Analyses regarding different Pharmacy impacts including cost of dispensing, reimbursement methodology, and potential management among other things.

9. Long Term Services and Support Assistance

Analyses surrounding the State Long Term Care population including assistance with program design, waiver development, actuarially sound capitation rate setting, budget impacts, quality of care goals and results, access to care, and home and community-based service slots among other things.

10. Technical Assistance, Centers for Medicare and Medicaid Services (CMS) Communications

Upon request by DHS, provide technical assistance and participation in calls, meetings, and other communications with CMS on all current populations and programs, as well as any future programs and populations as developed by DHS.

11. Ad Hoc Projects

Complete ad hoc projects to include, without limitation, rate setting and feasibility studies on Medicaid Waiver programs, future state and federal changes to the Arkansas Medicaid program that may result in rate changes, non-Medicaid services provided through DHS, and annual reviews of the overall health care landscape in the state of Arkansas.

Vendor shall provide its methodology for all deliverables under this scope of work, including without limitation analyses, rate development, and financial modeling. Vendor-developed rates must adhere to CMS requirements for actuarial soundness (42 CFR 438.4) Prior to initiating any actuarial consulting project, DHS will provide a scoping document, with the Vendor’s assistance, at enough detail for the vendor to provide a fixed fee bid. This fixed fee bid shall include an explanation of the basis for the estimate including Vendor’s schedule of required hours and staffing. The Vendor shall provide these services either through internal resources, or, at DHS discretion, through procurement of sub-contractors who have the specific skills required. Any resulting work efforts will be administered by the Vendor through their contract with DHS.


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As required by DHS, the Vendor must provide status reports for each project throughout its life and must receive approval from DHS whenever the scope, schedule or budget must be modified. DHS reserves the right to terminate the contract for convenience at any point in the project.

2.5 ROLES AND RESPONSIBILITIES

DHS will:

• Provide a request for services which outlines their expectations; • Review qualified staff/project teams identified by the Vendor and select the preferred option; and • Review and approve all payment documentation (e.g. timecards, deliverables) Vendor shall: • Review the request for services and work with DHS to ensure all areas of ambiguity have been addressed; • Identify qualified staff/project teams, including subcontractors, which can meet the needs outlined in the request

for services; • Coordinate with candidate/project team; • Administer all billing activities; • Be responsible for the project from initiation to completion; and • Report progress and/or costs of all additional services activities monthly.

2.6 PERFORMANCE STANDARDS

A. State law requires that all contracts for services include Performance Standards for measuring the overall quality of services provided. Attachment C: Performance Based Contracting identifies expected deliverables, performance measures, or outcomes; and defines the acceptable standards a vendor must meet in order to avoid assessment of damages.

B. The State may be open to negotiations of Performance Standards prior to contract award, prior to the

commencement of services, or at times throughout the contract duration.

C. The State shall have the right to modify, add, or delete Performance Standards throughout the term of the contract, should the State determine it is in its best interest to do so. Any changes or additions to performance standards will be made in good faith following acceptable industry standards, and may include the input of the vendor so as to establish standards that are reasonably achievable.

D. All changes made to the Performance Standards shall become an official part of the contract. E. Performance Standards shall continue throughout the term of the contract.

F. Failure to meet the minimum Performance Standards as specified may result in the assessment of damages or

termination of the contract.

G. In the event a Performance Standard is not met, the vendor will have the opportunity to defend, respond to, or cure to as determined by the State, the insufficiency. The State may waive damages if it determines there were extenuating factors beyond the control of the vendor that hindered the performance of services or it is in the best interest of the State. In these instances, the State shall have final determination of the performance acceptability.

Should any compensation be owed to the agency due to the assessment of damages, vendor shall follow the direction of the agency regarding the required compensation process.


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SECTION 3 – GENERAL CONTRACTUAL REQUIREMENTS • Do not provide responses to items in this section. 3.1 PAYMENT AND INVOICE PROVISIONS

A. All invoices shall be forwarded to: [Insert invoicing address]

B. Payment will be made in accordance with applicable State of Arkansas accounting procedures upon

acceptance goods and services by the agency.

C. The State shall not be invoiced in advance of delivery and acceptance of any goods or services.

D. Payment will be made only after the vendor has successfully satisfied the agency as to the reliability and effectiveness of the goods or services purchased as a whole.

E. The vendor should invoice the agency by an itemized list of charges. The agency’s Purchase Order Number

and/or the Contract Number should be referenced on each invoice.

F. Other sections of this Bid Solicitation may contain additional Requirements for invoicing.

G. Selected vendor must be registered to receive payment and future Bid Solicitation notifications. Vendors may register on-line at https://www.ark.org/vendor/index.html.

3.2 GENERAL INFORMATION

A. The State shall not lease any equipment or software for a period of time which continues past the end of a fiscal year unless the contract allows for cancellation by the State Procurement Official upon a thirty (30) day written notice to the vendor/lessor in the event funds are not appropriated.

B. The State shall not contract with another party to indemnify and defend that party for any liability and

damages.

C. The State shall not pay damages, legal expenses or other costs and expenses of any other party.

D. The State shall not continue a contract once any equipment has been repossessed.

E. Any litigation involving the State must take place in Pulaski County, Arkansas.

F. The State shall not agree to any provision of a contract which violates the laws or constitution of the State of Arkansas.

G. The State shall not enter a contract which grants to another party any remedies other than the following:

• The right to possession. • The right to accrued payments. • The right to expenses of deinstallation. • The right to expenses of repair to return the equipment to normal working order, normal wear and tear

excluded. • The right to recover only amounts due at the time of repossession and any unamortized nonrecurring cost

as allowed by Arkansas Law.

H. The laws of the State of Arkansas shall govern this contract.

I. A contract shall not be effective prior to award being made by a State Procurement Official.

J. In a contract with another party, the State will accept the risk of loss of the equipment or software and pay for any destruction, loss or damage of the equipment or software while the State has such risk, when:

https://www.ark.org/vendor/index.html


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• The extent of liability for such risk is based upon the purchase price of the equipment or software at the

time of any loss, and

• The contract has required the State to carry insurance for such risk. 3.3 CONDITIONS OF CONTRACT

A. The vendor shall at all times observe and comply with federal and State of Arkansas laws, local laws, ordinances, orders, and regulations existing at the time of, or enacted subsequent to the execution of a resulting contract which in any manner affect the completion of the work.

B. The vendor shall indemnify and save harmless the agency and all its officers, representatives, agents, and

employees against any claim or liability arising from or based upon the violation of any such law, ordinance, regulation, order or decree by an employee, representative, or subcontractor of the vendor.

C. The Contractor agrees to the Performance Based Contracting standards as presented in Attachment C, DHS

Standard Terms and Conditions as presented in Attachment D, a pro forma contract as presented in Attachment E, the Business Associate Agreement as presented in Attachment F, and the Organizational or Personal Conflict of Interest policy as presented in Attachment G.

3.4 STATEMENT OF LIABILITY

A. The State will demonstrate reasonable care but will not be liable in the event of loss, destruction or theft of vendor-owned equipment or software and technical and business or operations literature to be delivered or to be used in the installation of deliverables and services. The vendor shall retain total liability for equipment, software and technical and business or operations literature. The State shall not at any time be responsible for or accept liability for any vendor-owned items.

B. The vendor’s liability for damages to the State shall be limited to the value of the Contract or $5,000,000,

whichever is higher. The foregoing limitation of liability shall not apply to claims for infringement of United States patent, copyright, trademarks or trade secrets; to claims for personal injury or damage to property caused by the gross negligence or willful misconduct of the vendor; to claims covered by other specific provisions of the Contract calling for damages; or to court costs or attorney’s fees awarded by a court in addition to damages after litigation based on the Contract. The vendor and the State shall not be liable to each other, regardless of the form of action, for consequential, incidental, indirect, or special damages. This limitation of liability shall not apply to claims for infringement of United States patent, copyright, trademark or trade secrets; to claims for personal injury or damage to property caused by the gross negligence or willful misconduct of the vendor; to claims covered by other specific provisions of the Contract calling for damages; or to court costs or attorney’s fees awarded by a court in addition to damages after litigation based on the Contract.

C. Language in these terms and conditions shall not be construed or deemed as the State’s waiver of its right of

sovereign immunity. The vendor agrees that any claims against the State, whether sounding in tort or in contract, shall be brought before the Arkansas State Claims Commission as provided by Arkansas law, and shall be governed accordingly.

3.5 PERFORMANCE BONDING

A. The Contractor may be required to obtain performance and payment bonds, errors and omissions insurance or other proof of liability insurance, as determined by the state.

B. The following situations may warrant a performance bond: 1. The State’s property or funds are to be provided to the contractor for using in performing the contract; 2. Substantial progress payments are made before delivery of end items is complete; or

3. The duties of the Contractor, if breached, could expose the State to liabilities.

C. If it is determined that a performance bond is required, the Contractor shall obtain a performance bond as

follows:


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1. The amount of the performance bonds shall be one hundred percent (100%) of the original contract price, unless the State determines that a lesser amount would be adequate for the protection of the State; and

2. The State may require additional performance bond protection when a contract price is increased or modified.

D. Upon request by DHS, the Contractor shall submit documentation to the satisfaction of the State that a

performance bond, errors and omissions insurance, or other liability insurance has been obtained. The contractor shall notify the State of any changes, modification, or renewals for the performance bond during the term of the contract.

3.6 RECORD RETENTION

A. The vendor shall maintain all pertinent financial and accounting records and evidence pertaining to the contract in accordance with generally accepted principles of accounting and as specified by the State of Arkansas Law. Upon request, access shall be granted to State or Federal Government entities or any of their duly authorized representatives.

B. Financial and accounting records shall be made available, upon request, to the State of Arkansas's

designee(s) at any time during the contract period and any extension thereof, and for five (5) years from expiration date and final payment on the contract or extension thereof.

C. Other sections of this Bid Solicitation may contain additional Requirements regarding record retention.

3.7 PRICE ESCALATION A. Price increases will be considered at the time of contract renewal.

B. The vendor must provide to OP a written request for the price increase. The request must include supporting

documentation demonstrating that the increase in contract price is based on an increase in market price. OP shall have the right to require additional information pertaining to the requested increase.

C. Increases shall not be considered to increase profit or margins.

D. OP shall have the right to approve or deny the request.

3.8 CONFIDENTIALITY

A. The vendor, vendor’s subsidiaries, and vendor’s employees shall be bound to all laws and to all Requirements set forth in this Bid Solicitation concerning the confidentiality and secure handling of information of which they may become aware of during the course of providing services under a resulting contract.

B. Consistent and/or uncorrected breaches of confidentiality may constitute grounds for cancellation of a resulting

contract, and the State shall have the right to cancel the contract on these grounds.

C. Previous sections of this Bid Solicitation may contain additional confidentiality Requirements. 3.9 CONTRACT INTERPRETATION

Should the State and vendor interpret specifications differently, either party may request clarification. However if an agreement cannot be reached, the determination of the State shall be final and controlling.

3.10 CANCELLATION

A. For Cause. The State may cancel any contract resulting from this solicitation for cause at the discretion of DHS. The State shall give the vendor written notice of cancellation, specifying the terms and the effective date of contract termination.

B. For Convenience. The State may cancel any contract resulting from the solicitation by giving the Contractor

written notice of such cancellation no less than thirty (30) days prior to the date of cancellation.

C. If upon cancellation the Contractor has provided commodities or services which the State of Arkansas has accepted, and there are no funds legally available to pay for the commodities or services, the Contractor may


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file a claim with the Arkansas Claims Commission under the laws and regulations governing the filing of such claims.

3.11 SEVERABILITY

If any provision of the contract, including items incorporated by reference, is declared or found to be illegal, unenforceable, or void, then both the agency and the vendor shall be relieved of all obligations arising under such provision. If the remainder of the contract is capable of performance, it shall not be affected by such declaration or finding and shall be fully performed.


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SECTION 4 – STANDARD TERMS AND CONDITIONS

• Do not provide responses to items in this section. 1. GENERAL: Any special terms and conditions included in this solicitation shall override these Standard Terms and Conditions.

The Standard Terms and Conditions and any special terms and conditions shall become part of any contract entered into if any or all parts of the bid are accepted by the State of Arkansas.

2. ACCEPTANCE AND REJECTION: The State shall have the right to accept or reject all or any part of a bid or any and all bids, to waive minor technicalities, and to award the bid to best serve the interest of the State.

3. BID SUBMISSION: Original Bid Packets must be submitted to the Office of State Procurement on or before the date and time specified for bid opening. The Bid Packet must contain all documents, information, and attachments as specifically and expressly required in the Bid Solicitation. The bid must be typed or printed in ink. The signature must be in ink. Unsigned bids shall be disqualified. The person signing the bid should show title or authority to bind his firm in a contract. Multiple bids must be placed in separate packages and should be completely and properly identified. Late bids shall not be considered under any circumstances.

4. PRICES: Bid unit price F.O.B. destination. In case of errors in extension, unit prices shall govern. Prices shall be firm and shall not be subject to escalation unless otherwise specified in the Bid Solicitation. Unless otherwise specified, the bid must be firm for acceptance for thirty days from the bid opening date. "Discount from list" bids are not acceptable unless requested in the Bid Solicitation.

5. QUANTITIES: Quantities stated in a Bid Solicitation for term contracts are estimates only, and are not guaranteed. Contractor must bid unit price on the estimated quantity and unit of measure specified. The State may order more or less than the estimated quantity on term contracts. Quantities stated on firm contracts are actual Requirements of the ordering agency.

6. BRAND NAME REFERENCES: Unless otherwise specified in the Bid Solicitation, any catalog brand name or manufacturer reference used in the Bid Solicitation is descriptive only, not restrictive, and used to indicate the type and quality desired. Bids on brands of like nature and quality will be considered. If bidding on other than referenced specifications, the bid must show the manufacturer, brand or trade name, and other descriptions, and should include the manufacturer's illustrations and complete descriptions of the product offered. The State shall have the right to determine whether a substitute offered is equivalent to and meets the standards of the item specified, and the State may require the Contractor to supply additional descriptive material. The Contractor shall guarantee that the product offered will meet or exceed specifications identified in this Bid Solicitation. Contractors not bidding an alternate to the referenced brand name or manufacturer shall be required to furnish the product according to brand names, numbers, etc., as specified in the solicitation.

7. GUARANTY: All items bid shall be newly manufactured, in first-class condition, latest model and design, including, where applicable, containers suitable for shipment and storage, unless otherwise indicated in the Bid Solicitation. The Contractor hereby guarantees that everything furnished hereunder shall be free from defects in design, workmanship and material, that if sold by drawing, sample or specification, it shall conform thereto and shall serve the function for which it was furnished. The Contractor shall further guarantee that if the items furnished hereunder are to be installed by the Contractor, such items shall function properly when installed. The Contractor shall guarantee that all applicable laws have been complied with relating to construction, packaging, labeling and registration. The Contractor's obligations under this paragraph shall survive for a period of one year from the date of delivery, unless otherwise specified herein.

8. SAMPLES: Samples or demonstrators, when requested, must be furnished free of expense to the State. Each sample should be marked with the Contractor's name and address, bid or contract number and item number. If requested, samples that are not destroyed during reasonable examination will be returned at Contractor's expense. After reasonable examination, all demonstrators will be returned at Contractor’s expense.

9. TESTING PROCEDURES FOR SPECIFICATIONS COMPLIANCE: Tests may be performed on samples or demonstrators submitted with the bid or on samples taken from the regular shipment. In the event products tested fail to meet or exceed all conditions and Requirements of the specifications, the cost of the sample used and the reasonable cost of the testing shall be borne by the Contractor.

10. AMENDMENTS: Contractor’s bids cannot be altered or amended after the bid opening except as permitted by regulation.

11. TAXES AND TRADE DISCOUNTS: Do not include State or local sales taxes in the bid price. Trade discounts should be deducted from the unit price and the net price should be shown in the bid.

12. AWARD: Term Contract: A contract award will be issued to the successful Contractor. It results in a binding obligation without further action by either party. This award does not authorize shipment. Shipment is authorized by the receipt of a purchase order from the ordering agency. Firm Contract: A written State purchase order authorizing shipment will be furnished to the successful Contractor.

13. DELIVERY ON FIRM CONTRACTS: This solicitation shows the number of days to place a commodity in the ordering agency's designated location under normal conditions. If the Contractor cannot meet the stated delivery, alternate delivery schedules may become a factor in an award. The Office of State Procurement shall have the right to extend delivery if reasons appear valid. If the date is not acceptable, the agency may buy elsewhere and any additional cost shall be borne by the Contractor.


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14. DELIVERY REQUIREMENTS: No substitutions or cancellations are permitted without written approval of the Office of State Procurement. Delivery shall be made during agency work hours only 8:00 a.m. to 4:30 p.m. Central Time, unless prior approval for other delivery has been obtained from the agency. Packing memoranda shall be enclosed with each shipment.

15. STORAGE: The ordering agency is responsible for storage if the Contractor delivers within the time required and the agency cannot accept delivery.

16. DEFAULT: All commodities furnished shall be subject to inspection and acceptance of the ordering agency after delivery. Back orders, default in promised delivery, or failure to meet specifications shall authorize the Office of State Procurement to cancel this contract or any portion of it and reasonably purchase commodities elsewhere and charge full increase, if any, in cost and handling to the defaulting Contractor. The Contractor must give written notice to the Office of State Procurement and ordering agency of the reason and the expected delivery date. Consistent failure to meet delivery without a valid reason may cause removal from the Contractors list or suspension of eligibility for award.

17. VARIATION IN QUANTITY: The State assumes no liability for commodities produced, processed or shipped in excess of the amount specified on the agency's purchase order.

18. INVOICING: The Contractor shall be paid upon the completion of all of the following: (1) submission of an original and the specified number of copies of a properly itemized invoice showing the bid and purchase order numbers, where itemized in the Bid Solicitation, (2) delivery and acceptance of the commodities and (3) proper and legal processing of the invoice by all necessary State agencies. Invoices must be sent to the "Invoice To" point shown on the purchase order.

19. STATE PROPERTY: Any specifications, drawings, technical information, dies, cuts, negatives, positives, data or any other commodity furnished to the Contractor hereunder or in contemplation hereof or developed by the Contractor for use hereunder shall remain property of the State, shall be kept confidential, shall be used only as expressly authorized, and shall be returned at the Contractor's expense to the F.O.B. point provided by the agency or by OSP. Contractor shall properly identify items being returned.

20. PATENTS OR COPYRIGHTS: The Contractor must agrees to indemnify and hold the State harmless from all claims, damages and costs including attorneys' fees, arising from infringement of patents or copyrights.

21. ASSIGNMENT: Any contract entered into pursuant to this solicitation shall not be assignable nor the duties thereunder delegable by either party without the written consent of the other party of the contract.

22. CLAIMS: Any claims the Contractor may assert under this Agreement shall be brought before the Arkansas State Claims Commission (“Commission”), which shall have exclusive jurisdiction over any and all claims that the Contactor may have arising from or in connection with this Agreement. Unless the Contractor’s obligations to perform are terminated by the State, the Contractor shall continue to provide the Services under this Agreement even in the event that the Contractor has a claim pending before the Commission.

23. CANCELLATION: In the event, the State no longer needs the commodities or services specified for any reason, (e.g., program changes; changes in laws, rules or regulations; relocation of offices; lack of appropriated funding, etc.), the State shall have the right to cancel the contract or purchase order by giving the Contractor written notice of such cancellation thirty (30) days prior to the date of cancellation.

Any delivered but unpaid for goods will be returned in normal condition to the Contractor by the State. If the State is unable to return the commodities in normal condition and there are no funds legally available to pay for the goods, the Contractor may file a claim with the Arkansas Claims Commission under the laws and regulations governing the filing of such claims. If upon cancellation the Contractor has provided services which the State has accepted, the Contractor may file a claim. NOTHING IN THIS CONTRACT SHALL BE DEEMED A WAIVER OF THE STATE’S RIGHT TO SOVEREIGN IMMUNITY.

24. DISCRIMINATION: In order to comply with the provision of Act 954 of 1977, relating to unfair employment practices, the Contractor agrees that: (a) the Contractor shall not discriminate against any employee or applicant for employment because of race, sex, color, age, religion, handicap, or national origin; (b) in all solicitations or advertisements for employees, the Contractor shall state that all qualified applicants shall receive consideration without regard to race, color, sex, age, religion, handicap, or national origin; (c) the Contractor will furnish such relevant information and reports as requested by the Human Resources Commission for the purpose of determining compliance with the statute; (d) failure of the Contractor to comply with the statute, the rules and regulations promulgated thereunder and this nondiscrimination clause shall be deemed a breach of contract and it may be cancelled, terminated or suspended in whole or in part; (e) the Contractor shall include the provisions of above items (a) through (d) in every subcontract so that such provisions shall be binding upon such subcontractor or Contractor.

25. CONTINGENT FEE: The Contractor guarantees that he has not retained a person to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, except for retention of bona fide employees or bona fide established commercial selling agencies maintained by the Contractor for the purpose of securing business.

26. ANTITRUST ASSIGNMENT: As part of the consideration for entering into any contract pursuant to this solicitation, the Contractor named on the Bid Signature Page for this solicitation, acting herein by the authorized individual or its duly authorized agent, hereby assigns, sells and transfers to the State of Arkansas all rights, title and interest in and to all causes of action it may have under the antitrust laws of the United States or this State for price fixing, which causes of action have accrued prior to the date of this


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assignment and which relate solely to the particular goods or services purchased or produced by this State pursuant to this contract.

27. DISCLOSURE: Failure to make any disclosure required by Governor's Executive Order 98-04, or any violation of any rule, regulation, or policy adopted pursuant to that order, shall be a material breach of the terms of this contract. Any Contractor, whether an individual or entity, who fails to make the required disclosure or who violates any rule, regulation, or policy shall be subject to all legal remedies available to the agency.


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ARKANSAS DEPARTMENT OF HUMAN SERVICES PERFORMANCE BASED CONTRACTING

Pursuant to Ark. Code Ann. 19-11-1010 et. seq., the selected contractor shall comply with performance based standards. Following are the performance based standards that will be a part of the contract and with which the contractor must comply for acceptable performance to occur under the contract.

I. The contractor must comply with all statutes, regulations, codes, ordinances, and licensure or certification

requirements applicable to the contractor or to the contractor’s agents and employees and to the subject matter of the contract. Failure to comply shall be deemed unacceptable performance.

II. Except as otherwise required by law, the contractor agrees to hold the contracting Division/Office

harmless and to indemnify the contracting Division/Office for any additional costs of alternatively accomplishing the goals of the contract, as well as any liability, including liability for costs or fees, which the contracting Division/Office may sustain as a result of the contractor’s performance or lack of performance.

III. During the term of the contract, the division/office will complete sufficient performance evaluation(s) to

determine if the contractor’s performance is acceptable.

IV. The State shall have the right to modify, add, or delete Performance Standards throughout the term of the contract, should the State determine it is in its best interest to do so. Any changes or additions to performance standards will be made in good faith following acceptable industry standards, and may include the input of the vendor so as to establish standards that are reasonably achievable

V. The contract program deliverables and performance indicators to be performed by the contractor are:


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Service Criteriai Acceptable Performance Damages for Insufficient Performanceii

A. Immediate Requirements Vendor shall provide the following statistical and actuarial services deliverables on or before June 30, 2018. 1. Develop actuarially sound

rates for services provided under the Community and Employment Supports (CES) Waiver (see attached list). As part of this rate development, the Vendor shall: a. Review the current CES

Waiver rate methodology for overall integrity, compliance with federal Medicaid rules and regulations, and potential areas of improvement;

b. Convert the supportive

living and respite service rates from a daily rate to an hourly rate;

c. Provide input on the unit

structure of any other CES waiver services, as needed; and

d. Identify any other

needed and innovative adjustments to the model in support of program goals and values.

2. Develop actuarially sound

capitated and shared savings rates and quality incentive payments for services and populations provided under the Provider-Led Arkansas Shared Savings Entity (PASSE) based on claims data including without limitation Medicaid and other claims data.

3. Develop actuarially sound

rates for DHS programs covered under Arkansas’ Assisted Living Waiver and ARChoices Waiver, including

1. Acceptable performance is defined as one hundred percent (100%) compliance with all service criteria as determined by DHS.

2. Vendor-developed rates

must adhere to Centers for Medicare and Medicaid Services (CMS) requirements for actuarial soundness (42 CFR 438.4)

3. Vendor must provide its

methodology for all deliverables, including without limitation analyses, rate development and financial modeling.

Vendor shall be fined two-hundred and fifty thousand dollars ($250,000) per day for each day beyond the June 30, 2018 deadline the Vendor fails to meet all Service Criteria and Acceptable Performance standards.


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without limitation Assisted Living services and the ARChoices program.

B. Actuarial Analyses for

Existing Populations and Programs.

1. Consistent with the actuarial analyses tasks above, Vendor shall develop actuarially sound rates for various models for delivering Medicaid programs and services including without limitation the following:

a) A Provider-Led Arkansas

Shared Savings Entity (PASSE) with multi-tiered managed care rules;

b) The Arkansas Patient-

Centered Medical Home Program (PCMH);

c) A Program of All-

Inclusive Care for the Elderly (PACE);

d) Dental Managed Care;

e) Non-Emergency

Transportation (NET) for Medicaid beneficiaries; and

f) The Arkansas Works

program.

2. For existing populations and programs, including without limitation those listed above, the Vendor shall provide the following without limitation: a) Analyses surrounding

utilization and unit cost trends;

b) Incurred but not reported claims calculations;

c) Impacts of programmatic changes;

1. Acceptable performance is defined as one hundred percent (100%) compliance with all service criteria and acceptable performance standards as determined by DHS.

2. Vendor-developed rates must adhere to CMS requirements for actuarial soundness (42 CFR 438.4).



4. All service criteria must be

satisfied according to timeframes agreed upon by DHS and Vendor.

1st Incident: An acceptable Corrective Action Plan will be due to DHS within twenty (20) business days of the request. 2nd incident: A fifty percent (50%) penalty will be assessed in the following months’ payment to the provider for each thirty (30) day period the Vendor is not in full compliance with all requirements of the contract. The fifty percent (50%) penalty will be calculated from the total payment for the identified month in which the deficiency took place. 3rd incident: DHS reserves the right to impose additional financial penalties including without limitation, withholding payment on future invoices until Vendor is in full compliance and contract termination.


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d) Efficiency adjustments;

e) Development of

nonmedical expenditures including administration, medical management and profit, risk, and contingency margins; and

f) Other actuarial analyses impacting rate development.

3. Actuarial services around 1915b/c Waiver amendment work shall include without limitation the following: a) Assistance with Centers

for Medicare and Medicaid Services (CMS) communications;

b) Development of budget

neutrality and cost effectiveness figures;

c) Guidance on waiver

concepts and terms; and d) Assistance with the

completion of cost effectiveness and budget neutrality portions of the Waiver applications, as well as any other needed actuarial consulting with regard to 1915b/c waivers.

C. Actuarial Analyses for New

Populations

1. Vendor shall provide analyses, including actuarially sound rate development, for new populations and programs as developed by DHS, including without limitation the following: a) Potential newly eligible

populations created as a



must adhere to CMS requirements for actuarial soundness (42 CFR 438.4).

1st Incident: An acceptable Corrective Action Plan will be due to DHS within twenty (20) business days of the request. 2nd incident: A fifty percent (50%) penalty will be assessed in the following months’ payment to the provider for each thirty (30) day period the Vendor is not in full compliance with all requirements of the contract. The fifty percent (50%) penalty will be calculated from the total payment


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result of changes to Medicaid and the Affordable Care Act; and

b) Any other new populations and programs, as developed by DHS.

2. In addition to actuarially sound rate development, Vendor shall provide any additional actuarial analyses for new populations and programs and their impacts, as requested by DHS.

3. Vendor must provide its methodology for all deliverables, including without limitation analyses, rate development and financial modeling.



for the identified month in which the deficiency took place. 3rd incident: DHS reserves the right to impose additional financial penalties including without limitation, withholding payment on future invoices until Vendor is in full compliance and contract termination.

D. Program Design Strategy, Development, Implementation and Monitoring

Vendor shall provide assistance and consultation to DHS with regards to program design. Services included under this service criterion may include the following without limitation: 1. Solvency standards;

2. Reserves;

3. Risk sharing approaches; 4. Quality metrics;

5. Contracting;

6. Data reporting;

7. Financial template development and reporting; and

8. Other program items.







E. Public Meeting Support and Facilitation

At the request of DHS, Vendor shall attend, and at times lead, meetings in various settings to discuss aspects of Arkansas Medicaid. Meetings shall include without limitation the following: 1. Legislative meetings;



satisfied according to

1st Incident: An acceptable Corrective Action Plan will be due to DHS within twenty (20) business days of the request. 2nd incident: A fifty percent (50%) penalty will be assessed in the following months’ payment to the provider for each thirty (30) day period the Vendor is not in full compliance with all


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2. Stakeholder meetings; 3. Public comment meetings; 4. Provider community

meetings, and; 5. Internal DHS meetings.

timeframes agreed upon by DHS and Vendor.

requirements of the contract. The fifty percent (50%) penalty will be calculated from the total payment for the identified month in which the deficiency took place. 3rd incident: DHS reserves the right to impose additional financial penalties including without limitation, withholding payment on future invoices until Vendor is in full compliance and contract termination.

F. State General Fund Budget Modeling

Vendor shall provide assistance with General Fund budget forecast scenario modeling including a comprehensive understanding of the funding streams used by DHS.







G. Hospital Financial Modeling

Vendor shall provide Hospital Financial Modeling Services including without limitation the following: 1. Assistance with hospital

Upper Payment Limit forecast modeling;

2. Guidance and analyses for hospital reimbursement methodology approaches including All Patient Refined Diagnosis Related Groups (APR-DRGs) and Enhanced Ambulatory Patient Groups






1st Incident: An acceptable Corrective Action Plan will be due to DHS within twenty (20) business days of the request. 2nd incident: A fifty percent (50%) penalty will be assessed in the following months’ payment to the provider for each thirty (30) day period the Vendor is not in full compliance with all requirements of the contract. The fifty percent (50%) penalty will be calculated from the total payment for the identified month in which the deficiency took place. 3rd incident: DHS reserves the right to impose additional


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(EAPGs) (once implemented);

3. Meeting participation and

facilitation with the Arkansas Hospital Association; and

4. Other hospital financial

modeling services as requested by DHS.



financial penalties including without limitation, withholding payment on future invoices until Vendor is in full compliance and contract termination.

H. Benefit and Reimbursement Studies

Vendor shall provide analyses determining the impacts and implications of potential benefit changes or reimbursement adjustments on the following without limitation: 1. Rates;

2. Access: 3. Quality of care; 4. Budgets; and 5. Other potential points of

impact as requested by DHS.









I. Pharmaceutical Studies Vendor shall provide analyses regarding different Pharmacy impacts including without limitation the following: 1. Cost of dispensing;

2. Reimbursement methodology;

3. Potential management; and

4. Other potential points of impact as requested by DHS.






1st Incident: An acceptable Corrective Action Plan will be due to DHS within twenty (20) business days of the request. 2nd incident: A fifty percent (50%) penalty will be assessed in the following months’ payment to the provider for each thirty (30) day period the Vendor is not in full compliance with all requirements of the contract. The fifty percent (50%) penalty will be calculated from the total payment for the identified month in which the deficiency took place. 3rd incident: DHS reserves the right to impose additional financial penalties including without limitation, withholding


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Service Criteriai Acceptable Performance Damages for Insufficient Performanceii payment on future invoices until Vendor is in full compliance and contract termination.

J. Long-Term Services and Supports Assistance

Vendor shall provide analyses surrounding the State’s Long-Term Care population including without limitation assistance with the following: 1. Program design; 2. Waiver development; 3. Actuarially sound capitation

rate setting; 4. Budget impacts; 5. Quality of care goals and

results; 6. Access to care; 7. Home and community-based

service slots; and 8. Other analyses as requested

by DHS.









K. Technical Assistance, Centers for Medicare and Medicaid Services (CMS) Communications

Upon request by DHS, Vendor shall provide technical assistance and participation in calls, meetings, and other communications with CMS on all current populations and programs, as well as any future programs and populations as developed by DHS.


2. Vendor must provide its methodology for all deliverables, including without limitation analyses, rate development and financial modeling.





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L. Ad Hoc Projects Vendor shall complete ad hoc projects at the request of DHS to include, without limitation, the following: 1. Rate setting and feasibility

studies on Medicaid Waiver programs;

2. Future state and federal changes to the Arkansas Medicaid program that may result in rate changes;

3. Non-Medicaid services

provided through DHS; and 4. Annual reviews of the overall

health care landscape in the state of Arkansas.









M. Conflict of Interest Mitigation

During the term of this contract, the Vendor shall comply with the terms of the DHS Organizational or Personal Conflict of Interest provisions. The Vendor shall disclose all actual, apparent, or potential conflicts of interest to the Department of Human Services (DHS) within five (5) days of having knowledge of them. The Vendor shall develop a mitigation plan as requested by DHS which must be approved and accepted by DHS. Any changes to the approved mitigation plan must be approved in advance by DHS.

The Vendor must maintain one hundred percent (100%) compliance with this item at all times throughout the term of the contract

The Vendor will be fined five thousand dollars ($5,000) per day for each day past five (5) days for each actual, apparent, or potential conflict of interest it fails to disclose. The Vendor shall be fined one hundred thousand dollars ($100,000) for the first failure to comply with the mitigation plan developed by the Vendor and approved by DHS. Each subsequent violation of the mitigation plan shall be twice the amount of the immediately preceding violation fine.

N. Transition Planning Ninety (90) days prior to the contract end date, the vendor shall submit to DHS a detailed plan for transitioning all contracted services to DHS, or to another vendor selected by DHS to provide the contracted services.

The Vendor must maintain one hundred percent (100%) compliance with this item at all times throughout the term of the contract.

If the Vendor fails to meet the acceptable performance standard, DHS may issue a below standard Vendor Performance Report (VPR) maintained in the vendor file. Final payment may be withheld from the vendor until the all elements of the transition are satisfied as determined by DHS.


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The transition plan shall include provisions for the delivery of all proprietary data collected and/or created during the life of the contract to DHS thirty (30) days prior to the contract end date. All proprietary data collected and/or created during the final thirty (30) days of the contract, or any proprietary data not captured in the initial delivery, shall be delivered to DHS no more than fifteen (15) days following the contract end date.

Failure to meet the minimum Performance Standards as specified may result in the assessment of damages. In the event a Performance Standard is not met, the vendor will have the opportunity to defend or respond to, or cure to the satisfaction of the State, the insufficiency. The State may waive damages if it determines there were extenuating factors beyond the control of the vendor that hindered the performance of services of it is in the best interest of the State. In these instances, the State shall have final determination of the performance acceptability. Should any compensation be owed to the agency due to the assessment of damages, vendor shall follow the direction of the agency regarding the required compensation process. i Nothing in this table is intended to set forth all obligations of the Contractor under the contract. These obligations are in addition to any others imposed by the contract and applicable law. ii The damages set forth are not exclusive and shall in no way exclude or limit any remedies available at law or in equity.